SEC Whistleblower Blog

Littler Mendelson Releases Survey on Executive Reaction to Dodd-Frank

November 15, 2011
The law firm of Littler Mendelson, the largest U.S.-based law firm exclusively devoted to representing management in labor and employment law matters, released the results of a study on November 14, 2011, surveying the reactions of senior executives at various publicly traded or highly regulated companies to the new Dodd-Frank...

Assistant Attorney General Breuer Pledges to Oppose Any Weakening of FCPA

November 11, 2011
Assistant U.S. Attorney General Lanny Breuer spoke at the 26th National Conference on the Foreign Corrupt Practices Act on Tuesday, and made it clear that he would vehemently oppose any efforts made weaken the FCPA.  The FCPA prohibits companies registered with the SEC from paying bribes to foreign officials, and FCPA...

SEC Reports Its Most Prolific Year Ever For FY2011

November 10, 2011
The SEC reported yesterday that it filed a record 735 enforcement actions in the fiscal year ending on September 30, 2011.  In doing so, the Commission said in a press release, it recovered more than $2.8 billion in penalties and disgorgement.  This may be due in part to the reorganization the Commission underwent in 2009 and...

Rajaratnam Ordered to Pay Record Financial Penalty in Insider Trading Case

November 10, 2011
United States District Court Judge Jed S. Rakoff on Tuesday ordered a record financial penalty of $92.8 million against billionaire hedge fund manager Raj Rajaratnam, according to this SEC press release.  According to Robert Khuzami, director of the SEC’s Division of Enforcement, the penalty imposed by Judge Rakoff – the...

MF Global Collapse Points to Importance of Dodd-Frank Whistleblower Provisions

November 10, 2011
The collapse of the brokerage firm MF Global last week has left analysts wondering whether it was the first of many to fall, and what could have been done to prevent it. As reported by the New York Times a week ago in its article “Oversight of Brokers Scrutinized,” questions over who is responsible for oversight of midsize...

In-House Counsel as Whistleblowers Under the SEC Whistleblower Program

November 4, 2011
When the Association of Corporate Counsel held its annual meeting last month in Denver, the agenda reflected growing concern among in-house lawyers that they may become the targets of investigation or even prosecution by the SEC or other regulators.  The ACC gathering of some 2,000 general counsels and other top legal...

SEC Adds to List of “Covered Actions” Eligible for Whistleblower Awards

November 2, 2011
On August 12, 2011, the day the SEC’s whistleblower program formally went into effect, the SEC Office of the Whistleblower began publishing Notices of Covered Action that alert potential whistleblowers to opportunities to claim awards under the new program.  The published notices describe all SEC actions that result in final...

The Wall Street Journal reports on SEC's increased negligence litigation efforts

October 4, 2011
In its September 30, 2011 article “At SEC, Strategy Changes Course” The Wall Street Journal is reporting that the Securities and Exchange Commission is making a noticeable effort to increase its oversight of financial misconduct on Wall Street. Whereas in the past the SEC has had a general policy of reserving litigation for...

Groupon, Inc. substantially revises income statement following accounting professor's tip to SEC whistleblower program

September 30, 2011
The deal-of-the-day website service Groupon, Inc. has substantially amended its income statement with the Securities and Exchange Commission ahead of its plans to go public, after a tip from an accounting professor to the SEC's new whistleblower program questioned the company's financial health and its compliance with...

Critics Unfair in Seeking to Undermine New SEC Whistleblower Program

September 14, 2011
The SEC’s new whistleblower program – officially just one month old on September 12, 2011 – has already attracted a large number of tips from insiders who have provided the Commission with information about securities violations. Whistleblower advocates are impressed with the job the SEC's new Office of the Whistleblower is...

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